Northwest Airlink partners contributed $292 million in revenues during the first quarter of 2007, down 13.9 percent from the $339 million achieved in the year-ago period. Expenses, posted at $211 million, were also down by a whopping $42.3 percent from the $366 million posted in the Q106 quarter. Continental’s (CAL) regional affiliates earned $500 million in passenger revenue, down two percent from the year-ago period, along with a drop in revenue per available seat mile of 3.3 percent. Available seat miles, however, were up a slight 1.4 percent. Regional capacity purchase increased 3.6 percent from $415 million to $430 million net while revenue passenger miles increased only 1.8 percent. Its regional affiliate carried 4,231,000 passenger, up three percent. Load factor was flat at 75.5 percent, a rise of only 0.3 points. Yield was down 3.7 percent to 21.19 cents. Aircraft dropped to 264 from 270 in the year-ago period, a decline of 2.2 percent. Northwest did not report Airlink statistics in it recent announcement. Delta (DAL), United (UAUA) and USAirways (LCC) regional results were in last week’s issue of Regional Aviation News.
Regional airline flying contributed $57.3 million, up from $4.4 million to the $659.8 million in operating revenues logged by Alaska Airlines (ALK), according to material issued as part of its first quarter report. Operating expenses for the carrier totaled $669.2, of which regional costs totaled $29.4 million, up from $3.9 million in the year-earlier period. Regional operating statistics in the Alaska Air Group statement, show passenger enplanments reaching 578,000 in the first quarter while revenue passenger miles totaled 220 million and available seat miles amounted to 316 million. For a complete analysis of the first quarter for Alaska/Horizon see related story in this issue.

Mainline Results
Northwest (NWACQ) reported a first quarter 2007 pre-tax profit of $100 million before reorganization items which compares to a first quarter 2006 pre-tax loss of $129 million before reorganization items. Including reorganization items, Northwest reported a first quarter 2007 net loss of $292 million versus a $1.1 billion net loss for the first quarter of 2006. Operating revenues in the first quarter decreased by 0.6 percent versus the first quarter of 2006 to $2.87 billion. System passenger revenue increased 7.5 percent to $2.2 billion on 4.7 percent more mainline available seat miles (ASMs), resulting in a 2.7 percent improvement in unit revenue. Including regional carrier revenues, Northwest’s consolidated unit revenue improved 1.3 percent on 3.1 percent more ASMs.
Operating expenses in the quarter decreased 8.0 percent year-over-year to $2.67 billion. Mainline unit costs, excluding fuel, decreased by 7.5 percent on 4.6 percent more ASMs. See accompanying consolidated notes to the financial statements for additional information regarding year-over-year comparisons.
Continental Airlines reported first quarter 2007 net income, including special items, of $22 million ($0.21 diluted earnings per share). First quarter net income includes a $7 million gain on the sale of substantially all of the company's remaining investment in ExpressJet Holdings (XJT) and a net charge from other special items of $11 million. Excluding special items, Continental recorded net income of $26 million ($0.25 diluted earnings per share), an improvement of $72 million compared to the same period last year.
Strong revenue growth, continued cost discipline and a slight decrease in fuel prices contributed to the quarterly profit, the first time since 2001 that the company has posted a first quarter profit in what is a seasonally weak period. Continental's operating income of $64 million increased $53 million over the same period last year, despite severe winter storms that negatively impacted revenue by over $10 million.
Passenger revenue of $2.9 billion increased 7.9 percent ($212 million) compared to first quarter 2006, led by strong international revenue growth. Continental's growth and high load factors, both domestic and international, and improved yield produced higher revenue for the company.
Consolidated revenue passenger miles (RPMs) for the quarter increased 5.5 percent year-over-year on a capacity increase of 4.3 percent, resulting in a record first quarter consolidated load factor of 78.7 percent, 0.8 points above the previous first quarter record set in 2006. Consolidated yield for the quarter increased 2.4 percent year-over-year. Consolidated passenger revenue per available seat mile (RASM) for the quarter increased 3.4 percent year-over-year due to increased yield and record load factors. Mainline RPMs in the first quarter of 2007 increased 5.9 percent over the first quarter 2006, on a capacity increase of 4.7 percent. Mainline load factor was a record 79.1 percent, up 0.9 points year-over-year. Continental's mainline yield increased 4.1 percent over the same period in 2006. As a result, first quarter 2007 mainline RASM was up 5.3 percent over the first quarter of 2006.